Clarke Industries collects information on two customers for the past year:
Clarke estimates the following activity-based costs:
An in-stock order is an order for which all the items included are in inventory at the time the order is received.Required:
Compute the customer specific contribution of each customer for the year using:
a.16% of revenues as the allocation rate for customer-related costs.
b.The activity-based costing approach.

Question

Clarke Industries collects information on two customers for the past year:
  Clarke estimates the following activity-based costs:
  An in-stock order is an order for which all the items included are in inventory at the time the order is received.Required:
Compute the customer specific contribution of each customer for the year using:
a.16% of revenues as the allocation rate for customer-related costs.
b.The activity-based costing approach.

Quizplus · Accepted Answer

The Answer of Clarke Industries collects information on two customers for the past year:
  Clarke estimates the following activity-based costs:
  An in-stock order is an order for which all the items included are in inventory at the time the order is received.Required:
Compute the customer specific contribution of each customer for the year using:
a.16% of revenues as the allocation rate for customer-related costs.
b.The activity-based costing approach.

Clarke Industries Collects Information on Two Customers for the Past